I witnessed this so many times in the eighties and nineties, I can't even count. I saw so many shafted shareholders and company employees who lost their jobs, their pension benefits, their homes, etc. while the CEO and key executives waltzed out the door hundreds of millions of dollars better off. I know one key executive who was fired by Disney and took enough in his payoff (to get rid of him) to go in with a partner and buy a major American airline. Obscene. Another built a mega-mansion in Malibu while his former employees beat the pavement looking for work. The close associates who also benefited wound up in investment boutiques still raking in money.<quoted text>Hey NTPR,
here is something you can use to smack KA with as Romney is a Predatory Capitalist .(I have no problem with Capitalism but Predatory Capitalists...)
When Bain owned Steel Dynamics, Romney and his investors took $37 million in taxpayer subsidiesa sweet deal when they only invested about half that amount themselves. Tad DeHaven of the libertarian Cato Institute told the Los Angeles Times,This is corporate welfare, an example of the government stepping into the marketplace, picking winners and losers, providing profits to business owners, and leaving taxpayers stuck with the bill.
Classic crony capitalism: privatize the gain, socialize the risk. When Romney drove GST Steel into bankruptcy, he and his partners made $12 million in profit and another $4.5 million in consulting fees. But Romney stuck the taxpayers with a $44 million tab for the companys underfunded pensions.
Romney is from that mentality, and it NEVER considers anything aside from how much profit can the key players make on a transaction.
On the flip side of the coin, I have actually seen moderate sized companies grow those business and net worth being enabled to grow via junk bonds. Go figure.